Crowdfunding success stories: Chilango
The start-up bringing Mexican food to the mainstream with the help of a £2m Crowdcube “burrito bond”
Mexican burrito restaurant Chilango was the first company to offer a “mini-bond” through Crowdcube and it was this innovative offering – lending in exchange for a fixed rate of interest – which caught investor attention and saw it successfully raise £2.1m from the crowd.
749 people backed the London burrito company in exchange for 8% gross interest per annum over the four-year lifetime of the bond with backers also offers a range of additional benefits such as free burrito vouchers and one meal a week in Chilango restaurants for anyone that invested £10,00 or more.
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Established in 2007 by Growing Business Young Guns Dan Houghton and Eric Partaker with an initial £4.5m, Chilango is a fast-service Mexican restaurant chain which has previously won awards as the No1 Mexican Restaurant in London and the No1 Best Buy.
At the time of the campaign, the brand had seven sites across the capital but intended to use its “burrito bond” to take its number to 10 with additional sites in other areas of London.
On the success of the mini-bond scheme, Chilango’s Partaker commented: “The brand awareness and engagement we created, together with Crowdcube, is simply off-the-charts.
“We not only raised the capital we needed to open our next batch of restaurants, but created 749 brand ambassadors to support our growth”.